December 18th 2025.
On Thursday, the Lok Sabha passed the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission Bill, 2025. This bill aims to replace the MGNREGA (National Rural Employment Guarantee Act) and bring about a significant change in the government's involvement in rural employment.
The MGNREGA was originally passed in 2005 and later renamed as the Mahatma Gandhi National Rural Employment Guarantee Act in 2009. Its primary objective was to improve the livelihood security of rural households by providing at least 100 days of guaranteed wage employment to adult members who volunteered for unskilled manual work.
The Viksit Bharat Guarantee for Rozgar and Ajeevika Mission Bill, on the other hand, has a more ambitious goal of aligning the rural development framework with the national vision of Viksit Bharat 2047. It proposes a statutory guarantee of 125 days of wage employment for every household, an increase from the previous 100 days promised by the MGNREGA.
One of the key differences between the two frameworks is the number of days of wage employment. While the MGNREGA guarantees 100 days, the VB-G RAM G Bill promises 125 days. Moreover, the MGNREGA is demand-driven, meaning the government must allocate additional funds if there is a demand for work. However, the VB-G RAM G Bill provides for normative allocation to states, and any additional expenditure will be borne by the state governments.
Under the MGNREGA, the central government is responsible for 100% of the wages, while the cost of materials is shared 75:25 between the Centre and the states. However, under the VB-G RAM G Bill, the state governments will bear a larger share of the expenditure, with the central government sharing 90% of the financial liability for northeastern and Himalayan states and 60% for all other states and Union territories with legislature. For UTs without legislature, the central government will cover the entire cost.
Another significant difference is in the timing of seeking work. While the MGNREGA allows for work to be sought throughout the year, the VB-G RAM G Bill restricts this to a specific period notified by the state government, usually during the peak agricultural seasons of sowing and harvesting.
The type of work also differs between the two frameworks. Under the MGNREGA, work is divided into broad categories, such as water conservation, drought-proofing, and flood control, among others. In contrast, the VB-G RAM G Bill lists four thematic focus domains: water security, core rural infrastructure, livelihood-related infrastructure, and works for mitigating extreme weather events.
The decision-making process and involvement of local bodies also vary between the MGNREGA and VB-G RAM G. While under the MGNREGA, the gram panchayat is responsible for identifying projects and making decisions in open assemblies, the VB-G RAM G Bill states that the work should originate from the Viksit Gram Panchayat Plans, prepared by the gram panchayats and integrated with the PM Gati Shakti National Master Plan.
Furthermore, the VB-G RAM G Bill introduces categorization of panchayats into categories A, B, and C, based on development parameters. Each panchayat will prepare saturation-mode plans according to its category, as opposed to the MGNREGA, which does not have any categorization of panchayats.
Lastly, the VB-G RAM G Bill envisions a comprehensive digital ecosystem to modernize governance, accountability, and citizen engagement. This includes biometric authentication, mobile-based worksite monitoring, and artificial intelligence for planning, audits, and fraud risk mitigation.
In conclusion, the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission Bill, 2025, presents a significant shift in the government's approach to rural employment, with a focus on increasing the number of days of wage employment and introducing a digital ecosystem for improved governance and accountability.
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